Canadian Ports Face Large Backlogs After Dockworkers Resume Work

Operations resumed at Canada’s West Coast ports and now Montreal with an uneasy labor peace after the federal government ordered the end of the lockouts for dockworkers in Montreal and foremen on the West Coast. The ports, carriers, and trade associations are warning that there will be long delays as they work to reduce the backlog.

The Retail Council of Canada advised members that “All the ports have cautioned that it will take weeks to process the backlogs created by the labor unrest.” The trade association is advising members to work with agents and port officials for updates on their containers. At the same time, the Vancouver Fraser Port Authority is encouraging supply chain partners to take steps to accelerate the movement of cargo by issuing a “notice of readiness” as vessels reach the coast to speed up processing and removal.

The Canada Industrial Relations Board ordered the 700 foremen at the West Coast ports to return to work as of the shifts late on Thursday, November 14, after a 10-day lockout. On the East Coast, Montreal’s 1,200 dockworkers were instructed to return to work Saturday morning, November 16, after they too had been locked out last week.

Operations resumed slowly in Montreal with the Montreal Port Authority reporting there are over 5,000 TEU currently on the ground, 55,000 linear feet of rail to handle, and 22 vessels either waiting at anchor or on their way. 

“It may take a few weeks to re-establish the fluidity of the supply chain and process all goods, both imports and exports, currently at the Port of Montreal or in transit and due to arrive in the next few days,” the port authority warned in an update on Monday, November 18. “Every effort will be made to handle these volumes quickly.”

Canada’s largest port, Vancouver, was showing as of Monday that there were still a total of 39 vessels in the anchorage. The port authority said it is using a priority system to begin to clear the backlog. Some ships were waiting nearly two weeks in the anchorage. In addition, the Vancouver Fraser Port Authority is still asking vessels to slow steam and take other steps to avoid a further pile-up in the port’s already highly utilized anchorages. 

MSC Mediterranean Shipping Company, which was impacted earlier in Montreal when the dockworkers struck the terminals the carrier uses, reported to customers that work has resumed. It said that it would “continue to monitor the situation closely,” and keep customers apprised. 

Maersk however is warning customers that it will “resume the demurrage & detention clock on the day gate operations restart at affected ocean terminals. For cargo being received at inland locations for loading at affected ocean terminals, we will resume the clock when equipment receipt restarts at those inland locations.” The carrier however said there could be considerations for customers that documented that they were unable to obtain a terminal or rail appointment during the re-start period.

The locals of both unions immediately objected to the federal government’s instructions to CIRB to implement final and binding arbitration to settle the contract disputes. Each has said it would seek to challenge the arbitration order in court, but work has resumed in the ports.